Half year results to 30 June 2019

NZME LIMTED 2019 HALF YEAR FINANCIAL RESULTS o Statutory NPAT of $1.0 million, compared to $3.7 million in H1 2018, the decrease due to reduced revenue, the impact of NZ IFRS 16 and exceptional items. o Total revenue of $181.1 million, down 4% compared to previous corresponding period . o Operating costs* (excluding digital classifieds) reduced by $4.8 million (3%) - achieved through continued focus on cost out, increased efficiencies and reduced print volumes. o Operating EBITDA* of $19.4 million, compared to $23.2 million in H1 2018. o Operating NPAT* of $4.7 million, compared to $5.5 million in H1 2018, with Operating EPS of 2.4 cents per share, compared to 2.8 cents per share in H1 2018. o Net debt reduced by $8.1 million. o Successful launch of NZ Herald Premium - more than 15,000 paid subscribers, exceeding subscription and revenue expectations. o NZ Herald daily brand audience up 4.5% to 1,098,000, average issue readership up 3.9% to 477,000. o Radio revenue in growth for the half and showing positive momentum. o Radio talent changes made as part of radio growth strategy. o Increased radio audience market share to 37.7% in June 2019, up from 34.9% in December 2018. o OneRoof continued listings growth and revenue growth momentum to $1.3 million. 2019 Half Year Summary NZME Limited (NZME) is pleased to report its financial results for the six months ended 30 June 2019, achieving some significant milestones in an exciting six months, albeit in a challenging operating environment. NZME launched its NZ Herald Premium offering in April 2019, giving subscribers access to New Zealand's best journalism, commentary and analysis across business, politics, news, sport, lifestyle and entertainment. This offering has been a huge success with more than 15,000 paid subscribers, exceeding subscriptions and revenue expectations. This provides additional revenue from digital subscriptions and a higher value proposition for our digital advertising customers. NZME also continues to make significant progress with its digital real estate platform, OneRoof. OneRoof continued listings and audience growth and achieved meaningful revenue growth to $1.3 million in the six months ended 30 June 2019. Total Revenue was $181.1 million for the six months ended 30 June 2019, a decline of 4% compared to the previous corresponding period. Advertising revenue declined 5% to $130.7 million for the six months ended 30 June 2019. We are pleased to report that radio revenue was in growth in the half year, and even more pleasing are the signs of continued momentum for growth in the second half of the year. However, ongoing pressure on print and digital advertising and a decline in print circulation revenue impacted the results in the period. NZME achieved an operating cost (excluding digital classified costs) reduction of $4.8 million (3%) through a continued focus on cost savings, increased efficiencies and a reduction in print volumes. Operating EBITDA decreased 16% in the period to $19.4 million. Operating net profit after tax (NPAT) for the six months ended 30 June 2019 was $4.7 million, a decrease of 15%, while statutory NPAT for the six months ended 30 June 2019 was $1.0 million ($3.7 million for the six months ended 30 June 2018). We have made good progress on our capital management programme and have reduced net debt by $8.1 million in the six months to $90.2 million as at 30 June 2019. However, due to the decrease in EBITDA in the period, our leverage ratio has remained at 1.8 times rolling 12 months EBITDA. In line with our Capital Management Policy, the Board have elected not to pay a dividend for the half year ended 30 June 2019 and will continue to focus on the reduction in net debt and leverage ratio with the aim to return to paying dividends when trading and investment conditions permit. Please refer to the following documents in relation to the NZME half year results to 30 June 2019: 1. NZX Announcement 2. NZX Announcement Commentary 3. Investor Presentation 4. Media Release 5. Shareholder Newsletter 6. Consolidated Interim Financial Statements NZME will host a webcast for investors and analysts, hosted by Michael Boggs (Chief Executive Officer) and David Mackrell (Chief Financial Officer) commencing at 10.00am NZT on Tuesday 27 August 2019 to discuss the 2019 half year results. A link to the webcast is available at: https://www.nzme.co.nz/investor-relations/webcasts/ Telephone details will be available upon registration, but please note only attendees on the webcast will be able to ask a question. ENDS Julia Belk Investor Relations Manager T: +64 21 2408997 Email: julia.belk@nzme.co.nz * Operating results are presented excluding the impact of NZ IFRS 16 and exceptional items to allow for a like for like comparison between H1 2018 and H1 2019. Please refer to note 2.3.2 and note 2.3.3 of the Consolidated Interim Financial Statements for the period ended 30 June 2019 and slide 28 and 29 of the 2019 half year results presentation for a detailed reconciliation. End CA:00339822 For:NZM Type:HALFYR Time:2019-08-27 08:42:23